Impression management by Indian female entrepreneurs: Mitigating investor bias in early-stage funding

Abstract

Despite growing recognition of female entrepreneurship, gender bias from investors continues to impede access to early-stage funding. As a countermeasure, female entrepreneurs often employ impression management (IM) techniques to shape investor perceptions and improve the prospects of funding. Yet, empirical investigations into the efficacy of such strategies remains nascent. This study examines the influence of IM on investor decision-making in the context of Indian female entrepreneurs. Employing an experimental design, 234 participants evaluated investment proposals online, yielding 694 notional investment decisions. Results from t-tests reveal a statistically significant bias against women entrepreneurs. However, findings also demonstrate IM strategies can attenuate this bias, particularly when coupled with favorable combinations of risk coverage and return potential. The study contributes to the literature on entrepreneurial finance and gender by offering evidence-based insights into the conditions under which IM may be most effective for females.